Problem 9-18A Performance reports and evaluation LO 9-1 Perez Corporation has four divisions: the assembly division, the processing division, the machining division, and the packing division All four divisions are under the control of the vice president of manufacturing. Each division has a manager and several departments that are directed by supervisors. The chain of command runs downward from vice president to division manager to supervisor. The processing division is composed of the paint and finishing departments. The May responsibility reports for the supervisors of these departments follow Budgeted Actual Variance Paint Department Controllable costs Raw materiala Labor Repair Maintenance Total Pinishing Department Controllable costs Raw materials Labor Repairs Maintenance Total $ 53,000 58, 800 5,900 3,700 $121.400 $ 55,100 $ 2.100 66,200 7. 400 0 9.860 1,040 3,450 250 $129,610 $9,210 U $ 41,000 45.500 3,380 2,340 $ 92,220 $38.900 41.000 3,830 2.930 66,660 $2,100F 4.500 5 4500 590 05.560 *Perez uses flexible budgets for performance evaluation Other pertinent cost data for May follow. Badgeted Actu Coat data of other divisions Assembly Machining Packing Other conta sociated with Processing division manager Vice president of manufacturing $385,500 -295,500 420, 450 0375,400 307.400 406,800 222,200 133,500 219,700 141,310 *Perez uses flexible budgets for performance evaluation Required Drew *Perez uses flexible budgets for performance evaluation Other pertinent cost data for May follow. Budgeted Actual Cost data of other divisions Assembly Machining Packing Other coats associated with Processing division manager Vice president of manufacturing $385,500 295,500 420,450 $375,400 307,400 406, 800 222, 200 133,500 219, 700 141,310 *Perez uses flexible budgets for performance evaluation. Required o. Prepare a responsibility report for the manager of the processing division b. Prepare a responsibility report for the vice president of manufacturing Complete this question by entering your answers in the tabs below. Required A Required B Prepare a responsibility report for the manager of the processing division. (Indicate the effect of each variance by selecting "F* for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance).) Responsibility Report Processing Division Manager For the Month Ended May 31 Budget Actual Variances Controllable costs Paint department Finishing department Other costs Total Other pertinent cost data for May follow Actual Budgeted Cost data of other divisions Assembly $385,500 Machining CATAL295,500 Packing 420, 450 Other costs associated with Processing division manager 222, 200 Vice president of manufacturing 133, 500 $375, 400 307. 400 406,800 219, 700 141,310 *Perez uses flexible budgets for performance evaluation. Required a. Prepare a responsibility report for the manager of the processing division, b. Prepare a responsibility report for the vice president of manufacturing. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a responsibility report for the vice president of manufacturing. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None' for no effect (1.e., zero variance)) Responsibility Report Vice President of Manufacturing For the Month Ended May 31 Budget Actual Variances Controllable costs Assembly division Processing division Machining division Packing division Other costs Total
